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Rents in GBA rose almost 300% in the last year and exceed inflation - La Nacion Propiedades
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Los alquileres en GBA subieron casi un 300% en el último año y superan a la inflación
El aumento de precios en los últimos 12 meses en el Gran Buenos Aires supera el de la inflación
www.lanacion.com.ar
February 24, 2024
The increase in prices in the last 12 months in Greater Buenos Aires exceeds that of inflation
Despite the increase in supply, rental prices continue to rise above inflation
In the midst of a real estate market with constant changes since the repeal of the rental law on December 29, 2023, when the Decree of Necessity and Urgency (DNU) of Javier Milei came into force , and in which they coexist time three models of contracts (those of the first Law, those of the October 2023 modification and those that are freely agreed between the parties under the Civil and Commercial Code by the DNU), prices do not stop rising.
On the other side of General Paz, the average value of the supply of used apartments for rent increased again above inflation in the last year (252% year-on-year), and are similar to the increases in the City of Buenos Aires - where two-room apartments exceeded a 292% increase in the last 12 months. In this way, according to the latest survey carried out by Real Estate Report, it showed that two-room units increased by 260% in the last year, while three-room units reached 287% higher.
In numbers, according to the expert site, the average rent for the offer of standard used apartments without amenities was close to $ 300,000 for three-room units , while one-bedroom apartments reach an average of $220,000 .
Variation in rental values in Greater Buenos AiresReal Estate Report
Now, although the portal hopes that there will be an “ accommodation of prices ” due to the repeal of the law, since the contract prices are agreed between the parties, it recognizes that “ this accommodation will not occur one day or another.” one month to another .”
In numbers, the northern area of Greater Buenos Aires has the most expensive rental options. In this case, Vicente López has the highest property prices, with an average value of $296,250 for a two-bedroom , and $435,000 for a three-bedroom. This is followed by: Martínez, with a value of $292,000 for a two-bedroom and $374,000 for a three-bedroom . While San Isidro is positioned in third place with an average rent of $242,250 and $360,000 for a two- and three-bedroom apartment , respectively.
In the southern zone, the neighborhoods with the highest used two-room units are:
- Quilmes : $232,220 for a two-bedroom and $290,835 for a three-bedroom.
- Avellaneda : two rooms on average at $215,715 and three rooms at $280,000.
- La Plata : the values for a two-bedroom are around $213,570 and $252,500 for a three-bedroom.
As for the western area , the two most expensive rooms are in Haedo , with an average value of $165,000, and $233,330 for three rooms; followed by Morón with $163,330 two rooms and $241,665 three rooms; and in third place is Ramos Mejía , with average values of $158,750 for two rooms and $260,000 for three rooms (the most expensive in the area).
New rental contracts are agreed upon by free decision between the parties
Despite everything, the offer increases in CABA
Since the end of the pandemic, the availability of rental properties in the city of Buenos Aires experienced a steady decline that hit an all-time low in February 2023, with around 4,700 units available. Today there are around 75% more than a year ago.After the repeal of the rental law and despite the fact that prices continue to rise, there was a change in the dynamics of the market: in one month (January) an increase of 62% in the supply of rental properties was observed versus December last year , according to the latest Zonaprop report and 75% is already recorded adding February.
The phenomenon had been anticipated by LA NACION , when Soledad Balayan, director of Maure Propiedades , published an analysis in which she anticipated a 50% increase in supply in the first 20 days of the new year.
The owners began to accept to resign prices due to the lack of visits
On a day-to-day basis, Balayan shares experiences that already validate the rearrangement of prices: he recognizes that owners are beginning to accept giving up prices due to the lack of visits . “We had three apartments in which we lowered the price; the market is adjusting them. It is very difficult for them to be low in nominal terms with the inflation levels that the country has. Rents will tend to be in line with inflation. There will be a slowdown and they will increase less and less ,” analyzes the broker.
The drop in prices is a phenomenon that other experts in the sector also share. “ Rental prices are experiencing a decline ; “Owners now avoid establishing initial prices with certainty, since, by adjusting them over a three-month period with two-year contracts, they are accepting more moderate initial values,” says Javier Igarzabal, director of DIC Propiedades.
The commonality between several real estate agencies is the constant growth, week after week, of the inventory of properties available for rent . “The DNU is generating positive results for both tenants and owners,” highlights Daniel Salaya Romera, director of the homonymous real estate company and adds: “This is reflected in the continuous increase in the stock of rental properties. It is expected that, as the weeks go by, this inventory will continue to grow, allowing tenants and owners to achieve more balanced and predictable conditions .”
In this sense, Enrique Abatti, president of the Chamber of Property Owners of the Argentine Republic, anticipates that the greatest increase in supply “will only be seen in six or seven months. That is why the owner who rents today will be able to defend a better price than in a while , when there will be more competition, and when the tenant will be in a position to demand more conditions,” he analyzes.
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